Method and system for processing a discount

ABSTRACT

A computer-implemented method for processing a discount is described. The method is implemented using a payment processor computing device associated with a payment network. The method includes receiving, at the payment processor computing device, from a discount module computing device, a notification of an adjusted authorization amount for a transaction, wherein the notification is received by the discount module computing device from an intercept node computing device at the time a cardholder makes a purchase. The method also includes receiving, at the payment processor computing device, an authorization request message including a non-adjusted authorization amount for the transaction, replacing the non-adjusted authorization amount with the adjusted authorization amount in the authorization request message, and transmitting the authorization request message to an issuer computing device.

CROSS-REFERENCE TO RELATED APPLICATIONS

This patent application claims the benefit of U.S. Provisional PatentApplication No. 61/906,582, filed Nov. 20, 2013, the entirety of whichis incorporated herein by reference.

BACKGROUND

This description relates to processing financial transactions, and moreparticularly, to applying a discount to a purchase price of a product orservice in a financial transaction processed by a payment network.

In known methods for processing payments initiated by a payment cardholder (cardholder), the cardholder purchases a product or service froma merchant, and the merchant transmits an authorization request messagefor the purchase price to an acquirer who then transmits theauthorization request through a payment network to an issuer bank. Theissuer bank transmits an authorization response message back through thepayment network to the acquirer, who then transmits the authorizationresponse message to the merchant. Such known methods do not includecommunication with, for example, an “off network” computing device thatdetermines whether one or more discounts may be applied to a purchaseprice of the product or service, adjusts the purchase price accordingly,and provides data for clearance and settlement after a discountedpurchase price has been approved by an issuer associated with thecardholder.

BRIEF DESCRIPTION OF THE DISCLOSURE

In one aspect, a computer-implemented method for processing a discountis provided. The method is implemented using a payment processorcomputing device associated with a payment network. The method includesreceiving, at the payment processor computing device, from a discountmodule computing device, a notification of an adjusted authorizationamount for a transaction. The notification is received by the discountmodule computing device from an intercept node computing device at thetime a cardholder makes a purchase. The method also includes receiving,at the payment processor computing device, an authorization requestmessage including a non-adjusted authorization amount for thetransaction, replacing the non-adjusted authorization amount with theadjusted authorization amount in the authorization request message, andtransmitting the authorization request message to an issuer computingdevice.

In another aspect, a payment processor computing device for processing adiscount is provided. The payment processor computing device includes amemory device and a processor coupled to the memory device. The paymentprocessor computing device is associated with a payment network. Thepayment processor computing device is configured to receive, from adiscount module computing device, a notification of an adjustedauthorization amount for a transaction. The notification is received bythe discount module computing device from an intercept node computingdevice at the time a cardholder makes a purchase. The payment processorcomputing device is additionally configured to receive an authorizationrequest message including a non-adjusted authorization amount for thetransaction, replace the non-adjusted authorization amount with theadjusted authorization amount in the authorization request message, andtransmit the authorization request message to an issuer computingdevice.

In another aspect, a computer-readable storage medium havingcomputer-executable instructions embodied thereon is provided. Whenexecuted by a payment processor computing device associated with apayment network and having at least one processor in communication witha memory, the computer-executable instructions cause the paymentprocessor computing device to receive, from a discount module computingdevice, a notification of an adjusted authorization amount for atransaction. The notification is received by the discount modulecomputing device from an intercept node computing device at the time acardholder makes a purchase. The computer-executable instructionsadditionally cause the payment processor computing device to receive anauthorization request message including a non-adjusted authorizationamount for the transaction, replace the non-adjusted authorizationamount with the adjusted authorization amount in the authorizationrequest message, and transmit the authorization request message to anissuer computing device.

In another aspect, a computer-implemented method for processing adiscount is provided. The method is implemented using an intercept nodecomputing device. The method includes receiving, at the intercept nodecomputing device, stock keeping unit (SKU) data and a non-adjustedauthorization amount for a transaction associated with the SKU from amerchant computing device. The method additionally includestransmitting, by the intercept node computing device to a discountmodule computing device, a first notification including the SKU data andthe non-adjusted authorization amount, receiving, from the discountmodule computing device, a second notification including an adjustedauthorization amount associated with the transaction, causing anauthorization request message to be transmitted to an acquirer computingdevice, wherein the authorization request message includes thenon-adjusted authorization amount, and transmitting split settlementamounts to the merchant computing device, wherein the split settlementamounts include a first settlement amount pertaining to the adjustedauthorization amount and a second settlement amount pertaining to anadjustment to the non-adjusted authorization amount.

In another aspect, an intercept node computing device for processing adiscount is provided. The intercept node computing device includes amemory device and a processor coupled to the memory device. Theintercept node computing device is configured to receive stock keepingunit (SKU) data and a non-adjusted authorization amount for atransaction associated with the SKU from a merchant computing device.The intercept node computing device is additionally configured totransmit, to a discount module computing device, a first notificationincluding the SKU data and the non-adjusted authorization amount,receive, from the discount module computing device, a secondnotification associated with an adjusted authorization amount associatedwith the transaction, cause an authorization request message to betransmitted to an acquirer computing device, wherein the authorizationrequest message includes the non-adjusted authorization amount, andtransmit split settlement amounts to the merchant computing device,wherein the split settlement amounts include a first settlement amountpertaining to the adjusted authorization amount and a second settlementamount pertaining to an adjustment to the non-adjusted authorizationamount.

In another aspect, a computer-readable storage medium havingcomputer-executable instructions embodied thereon is provided. Whenexecuted by an intercept node computing device having at least oneprocessor in communication with a memory, the computer-executableinstructions cause the intercept node computing device to receive stockkeeping unit (SKU) data and a non-adjusted authorization amount for atransaction associated with the SKU from a merchant computing device.Additionally, the computer-executable instructions cause the interceptnode computing device to transmit, to a discount module computingdevice, a first notification including the SKU data and the non-adjustedauthorization amount, receive, from the discount module computingdevice, a second notification including an adjusted authorization amountassociated with the transaction, cause an authorization request messageto be transmitted to an acquirer computing device, wherein theauthorization request message includes the non-adjusted authorizationamount, and transmit split settlement amounts to a merchant computingdevice, wherein the split settlement amounts include a first settlementamount pertaining to the adjusted authorization amount and a secondsettlement amount pertaining to an adjustment to the non-adjustedauthorization amount.

In another aspect, a computer-implemented method for processing adiscount is provided. The method is implemented using a discount modulecomputing device. The method includes receiving, from an intercept nodecomputing device, a first notification including a non-adjustedauthorization amount and stock keeping unit (SKU) data, determining, bythe discount module computing device, an adjusted authorization amountbased at least in part on the non-adjusted authorization amount and theSKU data, transmitting a second notification to a payment processorcomputing device associated with a payment network, wherein the secondnotification includes the adjusted authorization amount, andtransmitting a third notification to the intercept node computingdevice, wherein the third notification includes the adjustedauthorization amount.

In another aspect, a discount module computing device for processing adiscount is provided. The discount module computing device includes amemory device and a processor coupled to the memory device. The discountmodule computing device is configured to receive, from an intercept nodecomputing device, a first notification including a non-adjustedauthorization amount and stock keeping unit (SKU) data, determine anadjusted authorization amount based at least in part on the non-adjustedauthorization amount and the SKU data, transmit a second notification toa payment processor computing device associated with a payment network,wherein the second notification includes the adjusted authorizationamount, and transmit a third notification to the intercept nodecomputing device, wherein the third notification includes the adjustedauthorization amount.

In another aspect, a computer-readable storage medium havingcomputer-executable instructions embodied thereon is provided. Whenexecuted by a discount module computing device having at least oneprocessor in communication with a memory, the computer-executableinstructions cause the discount module computing device to receive, froman intercept node computing device, a first notification including anon-adjusted authorization amount and stock keeping unit (SKU) data,determine an adjusted authorization amount based at least in part on thenon-adjusted authorization amount and the SKU data, transmit a secondnotification to a payment processor computing device associated with apayment network, wherein the second notification includes the adjustedauthorization amount, and transmit a third notification to the interceptnode computing device, wherein the third notification includes theadjusted authorization amount.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1-8 show example embodiments of the methods and systems describedherein.

FIG. 1 is a schematic diagram illustrating an example multi-partypayment card industry system for enabling payment-by-card transactionsin which merchants and card issuers do not necessarily have a one-to-onerelationship.

FIG. 2 is a simplified block diagram of an example discount processingsystem including a plurality of computing devices, including a merchantcomputing device, an intercept node computing device, and a discountmodule computing device, in accordance with one example embodiment ofthe present disclosure.

FIG. 3 is an expanded block diagram of an example embodiment of a serverarchitecture of the discount processing system including the pluralityof computing devices in accordance with one example embodiment of thepresent disclosure.

FIG. 4 illustrates an example configuration of a client system shown inFIGS. 2 and 3.

FIG. 5 illustrates an example configuration of a server system shown inFIGS. 2 and 3.

FIG. 6 is a data flow diagram of an example method of processing anadjusted authorization amount for a transaction.

FIG. 7 is a flowchart of an example process that may be performed by thediscount processing system of FIGS. 2 and 3 for processing an adjustedauthorization amount.

FIG. 8 is a diagram of components of one or more example computingdevices that may be used in the discount processing system shown inFIGS. 2 and 3.

DETAILED DESCRIPTION OF THE DISCLOSURE

Systems and methods described herein enable applying adjustments, suchas discounts, to transactions in real time or on-the-fly. Morespecifically, in implementations of systems and methods describedherein, an intercept node computing device is coupled to or includedwithin a merchant point-of-sale computing device (i.e., point-of-saleterminal), referred to herein as a “merchant computing device.” When apayment card holder (“customer”) purchases a product or service, themerchant computing device transmits stock keeping unit (“SKU”) dataidentifying the product or service and a purchase price (“non-adjustedauthorization amount”) for the product or service to the intercept nodecomputing device. The intercept node computing device transmits at leastthe SKU data and the non-adjusted authorization amount to a discountmodule computing device, which is in communication with a paymentprocessor.

The discount module computing device determines an adjustedauthorization amount (i.e., an adjusted price) based at least on the SKUdata and the non-adjusted authorization amount, and transmits theadjusted authorization amount to the intercept node computing device.The discount module computing device also transmits at least theadjusted authorization amount to a payment processor computing deviceassociated with a payment network. The intercept node computing devicecauses an authorization request message for the non-adjustedauthorization amount to be transmitted to a computing device associatedwith an acquirer. The acquirer computing device transmits theauthorization request to the payment processor computing device. Thepayment processor computing device modifies the authorization requestmessage by replacing the non-adjusted authorization amount with theadjusted authorization amount received from the discount modulecomputing device, and transmits the modified authorization requestmessage to an issuer computing device. The issuer computing devicetransmits an authorization response message to the payment processorcomputing device. The authorization response message includes anauthorization for the adjusted authorization amount.

The payment processor computing device transmits an authorizationresponse message to the acquirer computing device, wherein theauthorization response message includes an approval of a partial amount(i.e., the adjusted authorization amount, referred to herein as the“partial approval”). The acquirer computing device transmits theauthorization response message to the intercept node computing device.The intercept node computing device transmits split settlement amountsto the merchant computing device. The split settlement amounts include afirst settlement amount that pertains to the adjusted authorizationamount and a second settlement amount that pertains to the adjustment tothe non-adjusted authorization amount (e.g., a discount applied by thediscount module computing device).

The merchant computing device may transmit a clearing record based onthe adjusted authorization amount (also referred to herein as a “partialapproval amount”), the payment processor computing device clears theadjusted approval amount with the issuer computing device, the discountmodule computing device settles the adjustment (e.g., discount) to thenon-adjusted authorization amount, and the acquirer computing devicesettles the transaction based on the adjusted authorization amount.

The methods and systems described herein may be implemented usingcomputer programming or engineering techniques including computersoftware, firmware, hardware or any combination or subset thereof,wherein at least one technical effect is achieved by performing at leastone of: (a) receiving, by a payment processor computing device, from adiscount module computing device, a notification of an adjustedauthorization amount for a transaction, wherein the notification isreceived by the discount module computing device from an intercept nodecomputing device at the time a cardholder makes a purchase; (b)receiving, by the payment processor computing device, an authorizationrequest message including a non-adjusted authorization amount for thetransaction; (c) replacing the non-adjusted authorization amount withthe adjusted authorization amount in the authorization request message;and (d) transmitting the authorization request message to an issuercomputing device. The technical effects described herein apply to thetechnical field of applying adjustments such as discounts or credits totransactions as they are being processed in a payment network (e.g.,on-the-fly). The systems and methods described herein provide thetechnical advantage of automatically determining whether one or morediscounts may be applied to a purchase price of a product or service,adjusting the purchase price accordingly, and providing data forclearance and settlement after the discounted purchase price has beenapproved by an issuer associated with an account holder who made thepurchase. Accordingly, adjustments to purchase prices, due for example,to discounts and/or credits may be applied more efficiently than inconventional systems. More specifically, by replacing a non-adjustedauthorization amount with an adjusted authorization amount at thepayment processor while a transaction is being processed, the describedsystems and methods eliminate the need to process a first paymenttransaction for an original amount and then process a subsequent paymenttransaction for an adjustment (e.g., credit or discount) to the purchaseprice. Additionally, a cardholder making a purchase is not required tomanage or otherwise keep track of coupons or other discounts or creditsthat may be applied to purchases.

As used herein, the terms “transaction card,” “financial transactioncard,” and “payment card” refer to any suitable transaction card, suchas a credit card, a debit card, a prepaid card, a charge card, amembership card, a promotional card, a frequent flyer card, anidentification card, a gift card, and/or any other device that may holdpayment account information, such as mobile phones, smartphones,personal digital assistants (PDAs), key fobs, and/or computers. Eachtype of transaction card can be used as a method of payment forperforming a transaction.

In one embodiment, a computer program is provided, and the program isembodied on a computer-readable medium. In an example embodiment, thesystem is executed on a single computer system, without requiring aconnection to a sever computer. In a further example embodiment, thesystem is being run in a Windows® environment (Windows is a registeredtrademark of Microsoft Corporation, Redmond, Wash.). In yet anotherembodiment, the system is run on a mainframe environment and a UNIX®server environment (UNIX is a registered trademark of AT&T located inNew York, N.Y.). The application is flexible and designed to run invarious different environments without compromising any majorfunctionality. In some embodiments, the system includes multiplecomponents distributed among a plurality of computing devices. One ormore components may be in the form of computer-executable instructionsembodied in a computer-readable medium. The systems and processes arenot limited to the specific embodiments described herein. In addition,components of each system and each process can be practiced independentand separate from other components and processes described herein. Eachcomponent and process can also be used in combination with otherassembly packages and processes.

The following detailed description illustrates embodiments of thedisclosure by way of example and not by way of limitation. It iscontemplated that the disclosure has general application to processingfinancial transaction data by a third party in industrial, commercial,and residential applications.

As used herein, an element or step recited in the singular and precededwith the word “a” or “an” should be understood as not excluding pluralelements or steps, unless such exclusion is explicitly recited.Furthermore, references to “example embodiment” or “one embodiment” ofthe present disclosure are not intended to be interpreted as excludingthe existence of additional embodiments that also incorporate therecited features.

FIG. 1 is a schematic diagram illustrating an example multi-partypayment card system 120 for enabling payment-by-card transactions inwhich merchants and card issuers do not necessarily have a one-to-onerelationship. The present disclosure relates to payment card system 120,such as a credit card payment system using the MasterCard® payment cardsystem payment network 128 (also referred to as an “interchange” or“interchange network”). MasterCard® payment card system payment network128 is a proprietary communications standard promulgated by MasterCardInternational Incorporated® for the exchange of financial transactiondata between financial institutions that are members of MasterCardInternational Incorporated®. (MasterCard is a registered trademark ofMasterCard International Incorporated located in Purchase, N.Y.).

In payment card system 120, a financial institution such as an issuer130 issues a payment account card, such as a credit card account or adebit card account, to a cardholder 122, who uses the payment accountcard to tender payment for a purchase from a merchant 124. To acceptpayment with the payment account card, merchant 124 must normallyestablish an account with a financial institution that is part of thefinancial payment system. This financial institution is usually calledthe “merchant bank” or the “acquiring bank” or “acquirer bank” or simply“acquirer”. When a cardholder 122 tenders payment for a purchase with apayment account card (also known as a financial transaction card),merchant 124 transmits stock keeping unit (“SKU”) data and anon-adjusted authorization request amount (non-adjusted price) to anintercept node computing device 123. Intercept node computing device 123transmits the SKU data and the non-adjusted request amount to a discountmodule computing device 125.

Discount module computing device 125 determines an adjustedauthorization request amount based at least in part on the SKU data andthe non-adjusted authorization amount and transmits the adjustedauthorization amount to intercept node computing device 123. Discountmodule computing device 125 also transmits the adjusted authorizationamount to payment network 128. Intercept node computing device 123causes a request for authorization to be transmitted to acquirer 126 forthe non-adjusted authorization amount (i.e., the non-adjusted price).That is, the intercept node computing device 123 may transmit theauthorization request itself or it may instruct merchant 124 to transmitthe authorization request. When the merchant transmits the authorizationrequest, the request may be performed over the telephone, but it usuallyis performed through the use of a point-of-interaction terminal(“merchant computing device”), which reads the cardholder's accountinformation from the magnetic stripe on the payment account card andcommunicates electronically with the transaction processing computers ofacquirer 126. Alternatively, acquirer 126 may authorize a third party toperform transaction processing on its behalf. In this case, thepoint-of-interaction terminal will be configured to communicate with thethird party. Such a third party is usually called a “merchant processor”or an “acquiring processor.”

Using payment card system payment network 128, the computers of acquirer126 or the merchant processor will communicate with the computers ofissuer 130, to determine whether the cardholder's account 132 is in goodstanding and whether the purchase is covered by the cardholder'savailable credit line or account balance. In some implementations, aserver system (“payment processor computing device”) of payment network128 matches the adjusted authorization amount received from discountmodule computing device 125 with the received authorization request andreplaces the non-adjusted authorization amount in the authorizationrequest with the adjusted authorization amount, prior to transmittingthe authorization request to computers of issuer 130. Based on thesedeterminations, the request for authorization of the adjustedauthorization amount will be declined or accepted by issuer 130. If therequest is accepted, an authorization code for a partial authorization,(i.e., authorization for the adjusted authorization amount) is issued tomerchant 124.

When a request for authorization is accepted by issuer 130, theavailable credit line or available balance of cardholder's account 132is decreased. Normally, a charge is not posted immediately to acardholder's account because bankcard associations, such as MasterCardInternational Incorporated®, have promulgated rules that do not allow amerchant to charge, or “capture,” a transaction until goods are shippedor services are delivered. When a merchant ships or delivers the goodsor services, merchant 124 captures the transaction by, for example,appropriate data entry procedures on the point-of-interaction terminal.If a cardholder cancels a transaction before it is captured, a “void” isgenerated. If a cardholder returns goods after the transaction has beencaptured, a “credit” is generated.

For debit card transactions, when a request for authorization isapproved by the issuer, the cardholder's account 132 is decreased.Normally, a charge is posted immediately to cardholder's account 132.The bankcard association then transmits the approval to the acquiringprocessor for distribution of goods/services, or information or cash inthe case of an ATM.

After a transaction is captured, the transaction is settled betweenmerchant 124, acquirer 126, and issuer 130. Settlement refers to thetransfer of financial data or funds between the merchant's account,acquirer 126, and issuer 130 related to the transaction. Usually,transactions are captured and accumulated into a “batch,” which issettled as a group. In payment card system 120, settlement includessettlement of the adjusted authorization amount as well as settlement ofthe portion of the non-adjusted authorization amount that was notincluded in the adjusted authorization amount (e.g., a discount orcredit), as described herein.

FIG. 2 is a simplified block diagram of an example discount processingsystem 200 in accordance with one embodiment of the present disclosure.In the example embodiment, system 200 includes a server system 202 and aplurality of client subsystems, also referred to as client systems 204or client computing devices, connected to server system 202. In oneembodiment, client systems 204 are computers including a web browser,such that server system 202 is accessible to client systems 204 usingthe Internet. Client systems 204 are interconnected to the Internetthrough many interfaces including a network, such as a local areanetwork (LAN) and/or a wide area network (WAN), dial-in connections,cable modems, wireless-connections, and special high-speed ISDN lines.Client systems 204 may be any device capable of interconnecting to theInternet including a web-based phone, personal digital assistant (PDA),or other web-connectable equipment. A database server 206 is connectedto a database 208 containing information on a variety of matters, asdescribed below in greater detail. In one embodiment, database 208 isstored on server system 202 and may be accessed by potential users atone of client systems 204 by logging onto server system 202 through oneof client systems 204. In any alternative embodiment, database 208 isstored remotely from server system 202 and may be non-centralized.Server system 202 could be any type of computing device configured toperform the steps described herein. As discussed below, adjustedauthorization amounts, non-adjusted authorization amounts, andcardholder account data are stored in database 208.

FIG. 3 is an expanded block diagram of an example embodiment of a serverarchitecture of discount processing system 200 in accordance with oneembodiment of the present disclosure. Discount processing system 200includes server system 202 and client systems 204. Server system 202further includes database server 206, an application server 302, a webserver 304, a fax server 306, a directory server 308, and a mail server310. A disk storage unit 312 is coupled to database server 206 anddirectory server 308. Servers 206, 302, 304, 306, 308, and 310 arecoupled in a local area network (LAN) 314. In addition, a systemadministrator's workstation 316, a user workstation 318, and asupervisor's workstation 320 are coupled to LAN 314. Alternatively,workstations 316, 318, and 320 are coupled to LAN 314 using an Internetlink or are connected through an Intranet.

Each workstation, 316, 318, and 320, is a personal computer having a webbrowser. Although the functions performed at the workstations typicallyare illustrated as being performed at respective workstations 316, 318,and 320, such functions can be performed at one of many personalcomputers coupled to LAN 314. Workstations 316, 318, and 320 areillustrated as being associated with separate functions only tofacilitate an understanding of the different types of functions that canbe performed by individuals having access to LAN 314.

Server system 202 is configured to be communicatively coupled to variousentities, including acquirers 322 and issuers 324, and to third parties,e.g., auditors, 334 using an Internet connection 326. Server system 202is also communicatively coupled with a merchant 207. Merchant 207 iscommunicatively coupled to intercept node computing device 123.Intercept node computing device 123 is communicatively coupled todiscount module computing device 125. Discount module computing device125 is communicatively coupled to server system 202. In someimplementations, intercept node computing device 123 is communicativelycoupled to server system 202. In some implementations, intercept nodecomputing device 123 is integrated within a computing device of merchant207. In some implementations, discount module computing device 125 isincluded within server system 202. In other implementations, discountmodule computing device 125 is external to server system 202 and isoperated by a third party. In some implementations, discount modulecomputing device 125 is a cardholder computing device 402 (e.g., asmartphone) (FIG. 4). As described herein, communication among devicesmay occur over any form of wireless or wired connection. Thecommunication in the example embodiment is illustrated as beingperformed using the Internet, however, any other wide area network (WAN)type communication can be utilized in other embodiments, i.e., thesystems and processes are not limited to being practiced using theInternet. In addition, and rather than WAN 328, local area network 314could be used in place of WAN 328.

In the example embodiment, any authorized individual or entity having aworkstation 330 may access system 200. At least one of the clientsystems includes a manager workstation 332 located at a remote location.Workstations 330 and 332 include personal computers having a webbrowser. Also, workstations 330 and 332 are configured to communicatewith server system 202. Furthermore, fax server 306 communicates withremotely located client systems, including a client system 332, using atelephone link. Fax server 306 is configured to communicate with otherclient systems 316, 318, and 320 as well.

FIG. 4 illustrates an example configuration of a cardholder computingdevice 402 operated by a cardholder 401. In some implementations,discount module computing device 125 is a cardholder computing device402. Additionally, client systems (“client computing devices”) 204, 316,318, and 320, workstation 330, and manager workstation 332 (shown inFIG. 3), and intercept node computing device 123 may include similarcomponents to cardholder computing device 402.

Cardholder computing device 402 includes a processor 405 for executinginstructions. In some embodiments, executable instructions are stored ina memory area 410. Processor 405 may include one or more processingunits (e.g., in a multi-core configuration). Memory area 410 is anydevice allowing information such as executable instructions and/or otherdata to be stored and retrieved. Memory area 410 may include one or morecomputer-readable media.

Cardholder computing device 402 also includes at least one media outputcomponent 415 for presenting information to cardholder 401. Media outputcomponent 415 is any component capable of conveying information tocardholder 401. In some embodiments, media output component 415 includesan output adapter such as a video adapter and/or an audio adapter. Anoutput adapter is operatively coupled to processor 405 and operativelycouplable to an output device such as a display device (e.g., a liquidcrystal display (LCD), organic light emitting diode (OLED) display,cathode ray tube (CRT), or “electronic ink” display) or an audio outputdevice (e.g., a speaker or headphones).

In some embodiments, cardholder computing device 402 includes an inputdevice 420 for receiving input from cardholder 401. Input device 420 mayinclude, for example, a keyboard, a pointing device, a mouse, a stylus,a touch sensitive panel (e.g., a touch pad or a touch screen), agyroscope, an accelerometer, a position detector, or an audio inputdevice. A single component such as a touch screen may function as bothan output device of media output component 415 and input device 420.

Cardholder computing device 402 may also include a communicationinterface 425, which is communicatively couplable to a remote devicesuch as server system 202 or a web server operated by a merchant.Communication interface 425 may include, for example, a wired orwireless network adapter or a wireless data transceiver for use with amobile phone network (e.g., Global System for Mobile communications(GSM), 3G, 4G or Bluetooth) or other mobile data network (e.g.,Worldwide Interoperability for Microwave Access (WIMAX)).

Stored in memory area 410 are, for example, computer-readableinstructions for providing a user interface to cardholder 401 via mediaoutput component 415 and, optionally, receiving and processing inputfrom input device 420. A user interface may include, among otherpossibilities, a web browser and client application. Web browsers enablecardholders, such as cardholder 401, to display and interact with mediaand other information typically embedded on a web page or a website fromserver system 202 or a web server associated with a merchant. A clientapplication allows cardholder 401 to interact with a server applicationfrom server system 202 or a web server associated with a merchant.

FIG. 5 illustrates an example configuration of a server computing device502 such as server system 202 (shown in FIGS. 2 and 3). Server computingdevice 502 may include, but is not limited to, database server 206,application server 302, web server 304, fax server 306, directory server308, and mail server 310. In some implementations, discount modulecomputing device 125 includes components that are similar to componentsof server computing device 502.

Server computing device 502 includes a processor 504 for executinginstructions. Instructions may be stored in a memory area 506, forexample. Processor 504 may include one or more processing units (e.g.,in a multi-core configuration).

Processor 504 is operatively coupled to a communication interface 508such that server computing device 502 is capable of communicating with aremote device such as cardholder computing device 402 or another servercomputing device 502. For example, communication interface 508 mayreceive requests from client systems 204 via the Internet, asillustrated in FIGS. 2 and 3.

Processor 504 may also be operatively coupled to a storage device 510.Storage device 510 is any computer-operated hardware suitable forstoring and/or retrieving data. In some embodiments, storage device 510is integrated in server computing device 502. For example, servercomputing device 502 may include one or more hard disk drives as storagedevice 510. In other embodiments, storage device 510 is external toserver computing device 502 and may be accessed by a plurality of servercomputing devices 502. For example, storage device 510 may includemultiple storage units such as hard disks or solid state disks in aredundant array of inexpensive disks (RAID) configuration. Storagedevice 510 may include a storage area network (SAN) and/or a networkattached storage (NAS) system.

In some embodiments, processor 504 is operatively coupled to storagedevice 510 via a storage interface 512. Storage interface 512 is anycomponent capable of providing processor 504 with access to storagedevice 510. Storage interface 512 may include, for example, an AdvancedTechnology Attachment (ATA) adapter, a Serial ATA (SATA) adapter, aSmall Computer System Interface (SCSI) adapter, a RAID controller, a SANadapter, a network adapter, and/or any component providing processor 504with access to storage device 510.

Memory areas 410 and 506 may include, but are not limited to, randomaccess memory (RAM) such as dynamic RAM (DRAM) or static RAM (SRAM),read-only memory (ROM), erasable programmable read-only memory (EPROM),electrically erasable programmable read-only memory (EEPROM), andnon-volatile RAM (NVRAM). The above memory types are example only, andare thus not limiting as to the types of memory usable for storage of acomputer program.

FIG. 6 is a data flow diagram 600 of an example method of processing anadjusted authorization amount for a transaction. Cardholder 122purchases 602 a product or service having a SKU, or other productidentifier, and a purchase price. A merchant computing device 207 (e.g.,point-of-sale terminal) transmits 604 the purchase price (“non-adjustedauthorization amount”) and SKU to intercept node computing device 123.In some implementations, intercept node computing device 123additionally transmits an identifier for the transaction, including, forexample a cardholder account number or payment card number. In someimplementations, intercept node computing device 123 is integrated intocomputing device 207 of merchant 124. In other implementations,intercept node computing device 123 is separate and communicativelycoupled to computing device 207 of merchant 124.

Intercept node computing device 123 transmits 606 a first notificationto discount module computing device 125 including at least the SKU (orother product identifier) and the non-adjusted authorization amount. Insome implementations, intercept node computing device 123 additionallytransmits a transaction identifier, for example an account number (e.g.,payment card number) of cardholder 122, to discount module computingdevice 125. Discount module computing device 125 may be, for example, aserver computing device of server system 202, a server computing deviceof a third party, a cardholder computing device (e.g., smartphone), orother computing device capable of performing the functions describedherein. For example, discount module computing device 125 may store, inmemory, at least one discount that may be applied to at least one SKU.For example, the discount may be 20% off of the purchase price of aproduct associated with the SKU. In some implementations, discountmodule computing device 125 may store one or more qualifiers inassociation with the SKU and the discount, for example a cardholderaccount number and a date or date range. For example, in someimplementations, the qualifier may require that the purchase must bemade by the cardholder associated with the cardholder account numberstored by discount module computing device 125 and/or the purchase musttake place by the date or within the date range stored by discountmodule computing device 125 in order for discount module computingdevice 125 to apply the discount to the purchase price (“non-adjustedauthorization amount”). Accordingly, in such implementations, interceptnode computing device 123 transmits such data (e.g., cardholder accountnumber and/or purchase date) to discount module computing device 125. Insome implementations, rather than applying a discount, discount modulecomputing device 125 is configured to apply a credit. For example, thecardholder account identifier may be associated with one or morerewards, for example money (or cash equivalent credits), that may beapplied to the purchase price (“non-adjusted authorization amount”). Ineither of the exemplary implementations, the discount or crediteffectively changes (e.g., reduces) the original purchase price to adifferent (e.g., reduced) purchase price (i.e., an adjustedauthorization amount). By applying the discount or credit to thepurchase price (i.e., the non-adjusted authorization amount), discountmodule computing device 125 generates an adjusted authorization amount.

Discount module computing device 125 transmits 608 a second notificationto server system 202 that includes at least the adjusted authorizationamount. In some implementations, discount module computing device 125also includes identifying information associated with the adjustedauthorization amount in the second notification. For example, discountmodule computing device 125 may include the transaction identifier inthe second notification. Additionally, discount module computing device125 transmits 610 a third notification to intercept node computingdevice 123 that includes the adjusted authorization amount and, at leastin some implementations, the transaction identifier. Intercept nodecomputing device 123 causes an authorization request message to betransmitted 612 to acquirer 126 including the non-adjusted authorizationamount. In some implementations, intercept node 123 receives theauthorization request from merchant computing device 207 at step 604,holds the authorization request message until receiving the adjustedauthorization amount in step 610, and transmits the authorizationrequest message to acquirer 126 at step 612. In other implementations,rather than directly transmitting the authorization request message toacquirer 126, intercept node computing device 123 transmits aninstruction to merchant computing device 207 to transmit theauthorization request message to acquirer 126. Acquirer 126, and morespecifically, acquirer computing device 322 (FIG. 3) transmits 614 theauthorization request message to server system 202. Server system 202matches the received authorization request message with the receivedadjusted authorization amount from step 608. For example, server system202 may match the received authorization request message and thereceived adjusted authorization amount using the transaction identifierdiscussed above. Additionally, server system 202 replaces thenon-adjusted authorization amount with the adjusted authorization amountin the authorization request message. In at least some implementationsin which cardholder 122 uses a payment card that includes an EMV(“Europay MasterCard Visa”) chip or other microchip that communicateswith the merchant computing device 207 to generate a security cryptogrambased at least in part on the original purchase amount (e.g., thenon-adjusted authorization amount), server system 202 moves thenon-adjusted authorization amount to an additional field of the modifiedauthorization request message, for use by the issuer 130 in validatingthe cryptogram against the non-adjusted authorization amount. In atleast some implementations, the cryptogram in such transactions isincluded in the authorization request message and the modifiedauthorization request message, for example in data element (“DE”) 55.

Next, server system 202 transmits 616 the modified authorization requestmessage to issuer 130, and more specifically, computing device 324 (FIG.3) of issuer 130. Issuer transmits 618 an authorization response messageto server system 202. Server system 202 transmits 620 the authorizationresponse message to acquirer 126 as a partial authorization (i.e., theauthorization response message includes a partial authorization code).More specifically, since issuer 130 only authorized a portion of thepurchase price (i.e., the adjusted authorization amount), server system202 transmits the authorization response message including a partialauthorization that pertains to the adjusted authorization amount.

Next, acquirer 126 transmits 622 the authorization response message tointercept node computing device 123. Intercept node computing device 123transmits 624 split settlement amounts to merchant computing device 207to complete the transaction and print a receipt. The receipt may includea notification that the original price was adjusted (e.g., that adiscount was applied). More specifically, intercept node computingdevice 123 transmits the first settlement amount pertaining to thesecond authorization response message (i.e., the adjusted authorizationamount) and second settlement amount pertaining to the discount orcredit (i.e., the non-adjusted authorization amount minus the adjustedauthorization amount) to merchant computing device 207. Accordingly, thefirst settlement amount and the second settlement amount, when combined,account for the full purchase price (i.e., non-adjusted authorizationamount). In some implementations, multiple SKUs may be included in thetransaction. In some implementations, discount module computing device125 may apply multiple discounts and/or credits to generate the adjustedpurchase price, and the multiple discounts and/or credits are accountedfor in the second settlement amount. In other implementations, acquirertransmits 622 the second authorization response message directly tomerchant computing device 207 rather than intercept node computingdevice 123 receiving the authorization response message and transmittingit to merchant computing device 207. In such implementations, interceptnode computing device 123 still transmits the second settlement amountpertaining to the one or more discounts and/or credits to merchantcomputing device 207.

Additionally, in some implementations, merchant computing device 207transmits 626 a clearing record based on the adjusted authorizationamount (“partial approval amount”) to acquirer 126. Acquirer 126 clears628 the transaction based on the partial approval amount. Next, serversystem 202 clears 630 the partial approval amount with issuer 130.Additionally, discount module computing device 125 or an entityassociated with discount module computing device 125 settles 632 thediscount(s) and/or credit(s) that were applied by discount modulecomputing device 125 to generate the adjusted authorization amount.Additionally, acquirer 126 settles 634 the transaction based on thepartial approval amount (i.e., the adjusted authorization amount).

FIG. 7 is a flowchart of an example process 700 that may be performed bydiscount processing system 200 for processing an adjusted authorizationamount. Initially, server system (“payment processor computing device”)202 receives 702, from discount module computing device 125, anotification of an adjusted authorization amount for a transaction. Thenotification is received by the discount module computing device 125from an intercept node computing device 123 at the time a cardholdermakes a purchase. Additionally, server system 202 receives 704 anauthorization request message including a non-adjusted authorizationamount for the transaction. Additionally, server system 202 replaces 706the non-adjusted authorization amount with the adjusted authorizationamount in the authorization request message. In addition, server system202 transmits 708 the authorization request message to an issuercomputing device 324. In some implementations, server system 202additionally receives, from the issuer computing device 324, anauthorization response message including an approval of the adjustedauthorization amount. Additionally, server system 202 may transmit theauthorization response message to an acquirer computing device 322,including a partial approval pertaining to the adjusted authorizationamount.

FIG. 8 is a diagram 800 of components of one or more example computingdevices, for example, server system 202, that may be used in embodimentsof the described systems and methods. FIG. 8 further shows aconfiguration of database 208 (FIG. 2). Database 208 is coupled toseveral separate components within server system 202, which performspecific tasks.

Server system 202 includes a notification receiving component 802 forreceiving from discount module computing device 125 a notification of anadjusted authorization amount for a transaction. Server system 202 alsoincludes an authorization request receiving component 804 for receivingan authorization request message including a non-adjusted authorizationamount for the transaction. Server system 202 additionally includes areplacing component 806 for replacing the non-adjusted authorizationamount with the adjusted authorization amount in the authorizationrequest message. Additionally, server system 202 includes a transmittingcomponent 808 for transmitting the authorization request message to anissuer computing device.

In an example embodiment, database 208 is divided into a plurality ofsections, including but not limited to, an adjusted authorizationamounts section 810, a non-adjusted authorization amounts section 812,and cardholder account data section 814. These sections within database208 are interconnected to retrieve and store information in accordancewith the functions and processes described above.

The term processor, as used herein, refers to central processing units,microprocessors, microcontrollers, reduced instruction set circuits(RISC), application specific integrated circuits (ASIC), logic circuits,and any other circuit or processor capable of executing the functionsdescribed herein.

As used herein, the terms “software” and “firmware” are interchangeable,and include any computer program stored in memory for execution byprocessor 405, 504, including RAM memory, ROM memory, EPROM memory,EEPROM memory, and non-volatile RAM (NVRAM) memory. The above memorytypes are example only, and are thus not limiting as to the types ofmemory usable for storage of a computer program.

As will be appreciated based on the foregoing specification, theabove-discussed embodiments of the disclosure may be implemented usingcomputer programming or engineering techniques including computersoftware, firmware, hardware or any combination or subset thereof. Anysuch resulting computer program, having computer-readable and/orcomputer-executable instructions, may be embodied or provided within oneor more computer-readable media, thereby making a computer programproduct, i.e., an article of manufacture, according to the discussedembodiments of the disclosure. These computer programs (also known asprograms, software, software applications or code) include machineinstructions for a programmable processor, and can be implemented in ahigh-level procedural and/or object-oriented programming language,and/or in assembly/machine language. As used herein, the terms“machine-readable medium,” “computer-readable medium,” and“computer-readable media” refer to any computer program product,apparatus and/or device (e.g., magnetic discs, optical disks, memory,Programmable Logic Devices (PLDs)) used to provide machine instructionsand/or data to a programmable processor, including a machine-readablemedium that receives machine instructions as a machine-readable signal.The “machine-readable medium,” “computer-readable medium,” and“computer-readable media,” however, do not include transitory signals(i.e., they are “non-transitory”). The term “machine-readable signal”refers to any signal used to provide machine instructions and/or data toa programmable processor.

The above-described embodiments of methods and systems enable applyingadjustments, such as discounts or credits, to transactions in real timeor on-the-fly. As a result, discounts and/or credits that are associatedwith a product or service and for which the cardholder qualifies, may beautomatically applied to a payment card transaction to adjust thepurchase price of the product or service, without requiring additionaleffort on the part of the cardholder.

This written description uses examples, including the best mode, toenable any person skilled in the art to practice the disclosure,including making and using any devices or systems and performing anyincorporated methods. The patentable scope of the disclosure is definedby the claims, and may include other examples that occur to thoseskilled in the art. Such other examples are intended to be within thescope of the claims if they have structural elements that do not differfrom the literal language of the claims, or if they include equivalentstructural elements with insubstantial differences from the literallanguages of the claims.

1. A computer-implemented method for processing a discount, said methodimplemented using a payment processor computing device associated with apayment network, said method comprising: receiving, at the paymentprocessor computing device, from a discount module computing device, anotification of an adjusted authorization amount for a transaction,wherein the notification is received by the discount module computingdevice from an intercept node computing device at the time a cardholdermakes a purchase; receiving, at the payment processor computing device,an authorization request message including a non-adjusted authorizationamount for the transaction; replacing, by the payment processorcomputing device, the non-adjusted authorization amount with theadjusted authorization amount in the authorization request message; andtransmitting, by the payment processor computing device, theauthorization request message including the adjusted authorizationamount to an issuer computing device.
 2. The computer-implemented methodof claim 1, further comprising: receiving from the issuer computingdevice, an authorization response message including an approval of theadjusted authorization amount; and transmitting the authorizationresponse message to an acquirer computing device including a partialapproval pertaining to the adjusted authorization amount.
 3. The methodof claim 1, further comprising matching, by the payment processorcomputing device, the received authorization request message with thereceived adjusted authorization amount using a transaction identifier.4. The computer-implemented method of claim 1, wherein the notificationis a second notification, said method further comprising: receiving, bythe discount module computing device, a first notification from anintercept node computing device including the non-adjusted authorizationamount and stock keeping unit (SKU) data; determining, by the discountmodule computing device, the adjusted authorization amount based atleast in part on the non-adjusted authorization amount and the SKU data;transmitting, by the discount module computing device, the secondnotification to the payment processor computing device; andtransmitting, by the discount module, a third notification to theintercept node computing device, wherein the third notification includesthe adjusted authorization amount.
 5. The method of claim 4, furthercomprising storing, by the discount module computing device, at leastone discount associated with at least one stock keeping unit (SKU). 6.The method of claim 4, further comprising: storing, by the discountmodule computing device, at least one qualifier in association with anaccount number, a discount, and a stock keeping unit (SKU), wherein thequalifier specifies that the transaction must be associated with theaccount number and the SKU for the discount to be applied; anddetermining the adjusted authorization amount includes determining thatthe transaction is associated with the account number and the SKU, andapplying the discount to the non-adjusted authorization amount.
 7. Themethod of claim 4, further comprising storing, by the discount modulecomputing device, at least one qualifier in association with a daterange, a discount, and a stock keeping unit (SKU), wherein the qualifierspecifies that the transaction must be associated with the SKU and mustoccur within the date range for the discount to be applied; anddetermining the adjusted authorization amount includes determining thatthe transaction is associated with the SKU and occurred within the daterange, and applying the discount to the non-adjusted authorizationamount.
 8. The method of claim 1, further comprising transmitting, bythe discount module computing device, a transaction identifierassociated with the transaction to at least one of the payment processorcomputing device and the intercept node computing device.
 9. A systemfor processing a discount, said system comprising a payment processorcomputing device including a memory device and a processor coupled tosaid memory device, said payment processor computing device isassociated with a payment network, said payment processor computingdevice configured to: receive, from a discount module computing device,a notification of an adjusted authorization amount for a transaction,wherein the notification is received by the discount module computingdevice from an intercept node computing device at the time a cardholdermakes a purchase; receive an authorization request message including anon-adjusted authorization amount for the transaction; replace thenon-adjusted authorization amount with the adjusted authorization amountin the authorization request message; and transmit the authorizationrequest message including the adjusted authorization amount to an issuercomputing device.
 10. The system of claim 9, wherein said paymentprocessor computing device is further configured to: receive from theissuer computing device, an authorization response message including anapproval of the adjusted authorization amount; and transmit theauthorization response message to an acquirer computing device includinga partial approval pertaining to the adjusted authorization amount. 11.The system of claim 9, wherein said payment processor computing deviceis further configured to match the received authorization requestmessage with the received adjusted authorization amount using atransaction identifier.
 12. The system of claim 9, wherein thenotification is a second notification, said system further comprisingsaid discount module computing device, said discount module computingdevice configured to: receive a first notification from an interceptnode computing device including the non-adjusted authorization amountand stock keeping unit (SKU) data; determine the adjusted authorizationamount based at least in part on the non-adjusted authorization amountand the SKU data; transmit the second notification to said paymentprocessor computing device; and transmit a third notification to theintercept node computing device, wherein the third notification includesthe adjusted authorization amount.
 13. The system of claim 12, saiddiscount module computing device further configured to store at leastone discount associated with at least one stock keeping unit (SKU). 14.The system of claim 12, said discount module computing device furtherconfigured to: store at least one qualifier in association with anaccount number, a discount, and a stock keeping unit (SKU), wherein thequalifier specifies that the transaction must be associated with theaccount number and the SKU for the discount to be applied; determinethat the transaction is associated with the account number and the SKU;and apply the discount to the non-adjusted authorization amount.
 15. Thesystem of claim 12, said discount module computing device furtherconfigured to store at least one qualifier in association with a daterange, a discount, and a stock keeping unit (SKU), wherein the qualifierspecifies that the transaction must be associated with the SKU and mustoccur within the date range for the discount to be applied; determinethat the transaction is associated with the SKU and occurred within thedate range; and apply the discount to the non-adjusted authorizationamount.
 16. The system of claim 12, said discount module computingdevice further configured to transmit a transaction identifierassociated with the transaction to at least one of said paymentprocessor computing device and an intercept node computing device. 17.An intercept node computing device for processing a discount, saidintercept node computing device comprising a memory device and aprocessor coupled to said memory device, said intercept node computingdevice is configured to: receive stock keeping unit (SKU) data and anon-adjusted authorization amount for a transaction associated with theSKU from a merchant computing device; transmit, to a discount modulecomputing device, a first notification including the SKU data and thenon-adjusted authorization amount; receive, from the discount modulecomputing device, a second notification including an adjustedauthorization amount associated with the transaction; cause anauthorization request message to be transmitted to an acquirer computingdevice, wherein the authorization request message includes thenon-adjusted authorization amount; and transmit split settlement amountsto the merchant computing device, wherein the split settlement amountsinclude a first settlement amount pertaining to the adjustedauthorization amount and a second settlement amount pertaining to anadjustment to the non-adjusted authorization amount.
 18. The interceptnode computing device of claim 17, further configured to cause theauthorization request message to be transmitted to the acquirercomputing device by transmitting the authorization request message tothe acquirer computing device directly.
 19. The intercept node computingdevice of claim 18, further configured to hold the authorization requestmessage until after said intercept node computing device has receivedthe second notification including the adjusted authorization amount. 20.The intercept node computing device of claim 17, further configured tocause the authorization request message to be transmitted to theacquirer computing device by transmitting an instruction to the merchantcomputing device to transmit the authorization request message to theacquirer computing device.